Robert Stinson, Jr., et al.

DISTRIBUTION COMPLETION: APRIL 30, 2016

Beginning in June 2015, checks were issued to investors pursuant to an Amended Plan of Distribution. We are continuing to try to locate the investors whose numbers are listed below, and will do so through April 30, 2016.

ON MAY 1, 2016, WE WILL CLOSE THE DISTRIBUTION and we will be unable to support any further distributions, including any issued but unnegotiated checks. This means that investors who are listed on the Final Distribution Schedule but who did not receive or negotiate a check will no longer be eligible for payment.

If your investor number is set forth directly below, OR you are listed on the Final Distribution Schedule but have not received or negotiated a check, you must, prior to April 30, 2016, SEND AN ELECTRONIC MAIL MESSAGE TO THE SEC AT StinsonDistributionObjections@sec.gov . Include in that correspondence your investor number and a phone number at which you can be reached.

BACKGROUND

On June 29, 2010, the SEC obtained an order granting a temporary restraining order, asset freeze and other emergency relief against Robert Stinson, Jr. and several entities he controlled. According to the SEC complaint, Stinson and his co-defendants perpetrated an offering fraud and Ponzi scheme in which at least $16 million was raised from more than 140 investors. See https://www.sec.gov/litigation/complaints/2010/comp21584.pdf. The Court also froze the assets of five named relief defendants - Susan L. Stinson, Christine A. Stinson, Michael G. Stinson, Laura Marable and First Commonwealth Service Company.

On September 13, 2010, upon the SEC's motion, the Court established a Receivership Estate and appointed Kamian Schwartzman as Receiver.

By opinion entered on June 20, 2011, and amended order and permanent injunction entered on June 22, 2011, the Court granted the SEC's motion for partial summary judgment, finding that the Defendants violated Sections 5(a), 5(c), and 17(a) of the Securities Act, and Section 10(b) of the Exchange Act, Rule 10b-5. On July 1, 2013, the Court entered a revised final judgment against all defendants and relief defendants, ordering the Defendants to pay disgorgement of 14,051,246, and prejudgment interest of $472,726, for a total obligation of $14,523,972.

By Order and Memorandum entered on January 8, 2015, the Court accepted the SEC's alternative proposal and ordered a distribution to investors of half of the net Receivership Estate. (See Docket Nos.332 and 333, Memorandum and Order). On January 13, 2015, the Court entered an Order Extending Time and to Show Cause (See Docket No. 334, Order to Show Cause), directing the SEC to submit a distribution plan to the Court by February 27, 2015, and setting procedures by the SEC is to provide notice of the proposed distribution to Investors and interested parties.

On May 15, 2015, pursuant to paragraph 26 of the Amended Plan, the SEC filed the Final Distribution Schedule with the Court, with investor names and addresses redacted. Also in accordance with the Amended Plan, the SEC simultaneously provided an unredacted version of the Final Distribution Schedule to the Tax Administrator. The SEC anticipates that, over the next 30 days, the Tax Administrator will proceed with the distribution in accordance with the Amended Plan.

Related Criminal Proceedings

On November 4, 2010, federal criminal authorities indicted Stinson in a related criminal action, charging him with five counts of wire fraud, four counts of mail fraud, nine counts of money laundering, one count of bank fraud, three counts of filing false tax returns, two counts of obstruction of justice, and two counts of making false statements to federal agents. See USA v. Stinson, 2:10-cr-00724 (E.D. Pa.) (MMB). On August 15, 2011, Stinson pled guilty to all 26 counts of the indictment. By revised judgment filed on December 16, 2013, the Honorable Michael M. Baylson sentenced R. Stinson to 324 months in prison and ordered Stinson to pay full restitution to his victims.